Chinese electric vehicle (EV) makers BYD, GAC Aion, and French automaker Citroen are making significant bets on Indonesia’s growing EV market.

Indonesia is positioning itself as the EV production hub in Southeast Asia by offering tax incentives to global manufacturers like BYD, GAC Aion, and Citroen. The country is leveraging its abundant nickel reserves, a critical component in EV batteries, to attract investments in battery production and form partnerships with local firms. The government is also developing charging infrastructure and promoting EV adoption domestically to create a comprehensive EV ecosystem. Tax incentives include exemptions from import taxes and a reduced luxury sales tax rate of 15% starting in 2025. Global manufacturers like BYD and Citroen have already committed to setting up manufacturing operations in Indonesia. The country is also developing critical components like lithium, cobalt, and manganese to become a leading global supplier of EV batteries. With its promising growth potential and government initiatives to reduce carbon emissions, Indonesia presents a lucrative opportunity for automakers like BYD, GAC Aion, and Citroen to establish themselves in the regional EV market.